There are a large number of Americans these days suffering from large amounts of credit card debt. Most individuals that are faced with this problem don’t know what to do. Creditors try to get the debtors to negotiate some kind of debt consolidation plan to eliminate the debt. Most of these plans have a high rate of failure and the debtor ends up begging for the creditor’s mercy. When it comes to a , chapter 7 is king. A Chapter 7 bankruptcy, when filed, will stop creditors in their tracks from the continuing harassment that they are perpetuating on the debtors.
Once the bankruptcy was filed, the automatic stay goes into effect and the creditor will not be able to even contact the debtor without being in violation. Filing bankruptcy is one of the most powerful tools that will make a creditor cringe, when it comes to debt elimination. In a Chapter 7, the debtor will be required to provide documentation to their bankruptcy attorney to prove their case. They will be responsible to show six months of pay stubs, up to two years of bank records and list all of their property that they own. If the bankruptcy attorney finds exemptions for all the property, the debtor will lose nothing. The only time the debtor goes to court is to the 341 meeting for the meeting of the creditors. At this meeting, the bankruptcy trustee will ask the debtor some basic questions. The whole process usually takes about 10 minutes. As long as the debtor is honest and not trying to hide anything they should have nothing to worry about. About two months after the 341 meeting, the debtor will receive their discharge in the mail. After receiving the discharge, the individual can enjoy the peace of mind being debt free.